ArcelorMittal Reports USD 414 per Tonne EBIDTA for Q3 of 2021
Strategic Research Institute
Published on :
12 Nov, 2021, 5:36 am
World’s leading integrated steel and mining company ArcelorMittal has announced results for the three months and nine-month period ended September 30, 2021. ArcelorMittal Chief Executive Officer Mr Aditya Mittal said “Our third quarter results were supported by the continuing strong price environment, resulting in the highest net income and lowest net debt since 2008. Despite the volatility we continue to see as a result of the on going presence and repercussions of COVID-19, this has been a very strong year for ArcelorMittal. The outlook remains positive: underlying demand is expected to continue to improve; and, although marginally off the recent record highs, steel prices remain at elevated levels, something which will be reflected in the annual contracts for 2022.”
July-September 2021 Quarter
Sales – USD 20,229 million, up 5% QoQ
Operating income – USD 5,345 million, up 21% QoQ
EBITDA – USD 6,058 million, up 20% QoQ
EBITDA per tonne – USD 414, up 32% QoQ
Crude steel production - 17.2 million tonnes, down 3% QoQ
Steel shipments - 14.6 million tonnes, down 9% QoQ
Total group iron ore production – 13 million tonnes, up 16% QoQ
Steel shipments
NAFTA shipments declined by 12%, largely due to operational disruptions (including the impacts of hurricane Ida) in Mexico
Brazil shipments declined by 4.6%, due largely to export shipment delays at the end of the quarter
Europe scope adjusted shipments declined by 7.7%, impacted by weaker demand, including lower automotive sales (driven by the late cancellation of orders), as well as the impacts on shipments caused by the severe floods in Europe in July 2021
ACIS shipments declined by 15.5% due to weaker market conditions in the CIS as well as export shipments delays at the end of the quarter.
January – September 2021
Sales - 55,765 million, up 43% YoY
Operating income - 12,418 million, up 10988% YoY
EBITDA - 14,352 million, up 457% YoY
EBITDA per tonne - USD304 per tonne, up 508% YoY
Crude steel production - 52.6 million tonnes, up 0% YoY
Steel shipments - 47.2 million tonnes, down 9% YoY
Total group iron ore production - 37.5 million tonnes, down 12% YoY
Decarbonization
Post 2Q 2021 results, ArcelorMittal and the Government of Canada announced a plan to invest CAD 1.8 billion in order to reduce CO2 emissions at Dofasco by 2.9Mt; finalizing Government of Canada support and in discussions with Government of Ontario
ArcelorMittal Mines Canada to invest CAD 205 million in its Port-Cartier pellet plant, enabling this facility to convert its entire 10Mtpa annual pellet production to DRI pellets by the end of 2025
The Company signed a letter of intent with the governments of Belgium and Flanders, supporting EUR 1.1 billion investment in decarbonization technologies at its flagship Gent plant
ArcelorMittal joined Breakthrough Energy’s Catalyst program as an anchor partner
The Company contributed to the development of the Mission Possible Partnership’s Net Zero Steel Strategy, published in October 2021 with Energy Transitions Commission and the Rocky Mountain Institute
Strategic Growth
ArcelorMittal has signed on September 10, 2021, with the Government of the Republic of Liberia an amendment to its Mineral Development Agreement which, upon ratification, will lead to the acceleration of construction of the 15Mtpa concentrator plant project phase 2 expansions; with further expansion opportunities to 30Mtpa
AMNS India completed construction of a 6Mtpa pellet plant in Odisha taking its pellet capacity up to 20Mtpa and commenced operations at the Ghoraburhani-Sagasahi iron ore mine in Odisha with 7.2Mtpa capacity
During the quarter, the Company approved strategic investments to strengthen its Long products businesses in Brazil (Monlevade expansion, previously “on hold”) and further vertically integrate its Mexico operations through investments at Las Truchas (Mexico) and Serra Azul (Brazil) iron ore mines.